- Scrap buying slows amid weak semis, finished steel demand
- Mills largely buying DRI; scrap preferred only for immediate needs
Ship-breaking melting scrap prices in Alang increased by INR 500/t d-o-d on 18 July, with HMS (80:20) assessed at INR 34,000/t ex-yard. The price improvement was supported by tight scrap availability due to limited vessel arrivals. However, trading activity remained subdued as steel mills continued to purchase cautiously, with many preferring DRI as a substitute raw material and procuring scrap only to meet immediate production requirements.
Market sentiment in the ship-breaking sector remained cautious, as most steel mills preferred to limit production and clear finished steel inventories rather than build raw material inventories.
Downstream steel prices in western India showed a positive trend. Billet prices in key markets such as Mumbai and Ahmedabad increased by INR 300-500/t ex-yard, primarily supported by improved raw material availability rather than stronger finished steel demand. Meanwhile, rebar prices also edged up by INR 100-200/t, reflecting a marginal improvement in the finished steel segment despite overall demand remaining subdued.
Domestic vs imported scrap
Imported melting scrap prices at Nhava Sheva Port were assessed at $336-$338/t, equivalent to around INR 34,730/t (inclusive of freight). Domestic HMS (80:20) prices in Mumbai increased by INR 250/t d-o-d to INR 31,600/t DAP, supported by tight scrap availability due to rain-related disruptions in collection and improved billet and rebar prices. Meanwhile, indicative offers for European shredded scrap remained at $390-$392/t CFR Nhava Sheva, limiting the competitiveness of imported material.
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